ibc v2

Offshore Companies (IBC)

An Offshore Company is an artificial person or legal entity created under the authority of the law and capable of rights and obligations.

read more
offshore bank account

Introduction to Banking Services

Panama is considered one of the most important financial centers of the world. Panama is gifted with the presence of many international banks as well as local banks.

read more

Offshore Private Foundations (PIF)

A Private Interest Foundation (PIF) is a legal entity wherein a person, denominated as Founder, transfers or donates goods and assets to a Foundation

read more
banner main llc

Limited Liability Companies (LLCS)

Its main and most important characteristic is that the responsibility of the partners is restricted exclusively to the capital provided by each one.

read more

Benefits of the Offshore Trust Funds

With a favorable legal framework for foreigners who wish to invest in Panama, the creation of trust funds has become a benefit to those who desire to protect their assets and confidentiality without putting an end to the tax exemption or minimum tax payment.

The legal entity known as Trust is regulated by Law No. 1 established in 1984. Under this legislation, a trust is a legal act whereby a settlor transfers property to a trustee for its administration according to the received instructions. It is necessary to draft a Trust Agreement, ie, the legal document that establishes the instructions and forms of administration of the goods. These goods, while being under the name of the trustee, are not part of their personal wealth and may not be seized or garnished to meet the demands made to the beneficiary in the country of origin since in the jurisdiction where this trust was established, the owner is the trustee.

Under this legal act assets of any kind can be transferred, being them the most common: investment instruments, property, warranties, certificates, cash, boats, cars, etc.. Moreover, these trusts offer high confidentiality as they are created in a private document without requiring registration in a Public Registry, secrecy is required in this operation. In this sense, the only requirement is the presence of a Panamanian notary to authenticate the signature of the founder and administrator, pledging to ensure the confidentiality of the transaction.

However, confidentiality and asset protection are not the only reasons why trusts are chosen by foreigners as a beneficial legal concept. Following the principle of territoriality governing Panamanian tax law, trusts also offer vast tax advantages that make them an attractive option for those who desire to relieve fiscal pressures exerted by their country of origin on their patrimony. Following, the tax exemptions trusts offer:

  • There are no taxes on the transfer of those assets in the trust.
  • Exempt from inheritance taxes.
  • Exempt from tax on shares or securities whose income is not of Panamanian origin, even when money is deposited in this country.
  • Exempt from tax on interest earned on bank deposits.

Delvalle & Delvalle offers comprehensive advice on the establishment and maintenance of an offshore trust for you to enjoy the extensive tax and privacy benefits offered by this legal entity.

To discuss your case in detail, make an appointment with our lawyers.

Over 10 years of experiences advising clients from all over the world.

10 años de experiencia

Latest Articles

@DelvalleLaw - Twitter

Delvalle & Delvalle

Dear Clients; Please take note that our office will be closed on Monday 11 November due to National Holidays. Our office will re-open November 12, on a regular schedule. Best Regards

Delvalle & Delvalle

Felicidades Panamá, 116 años de Republica!

Delvalle & Delvalle

Dear Clients; Please take note that our office will be closed on Monday 4th, November 2019 and Tuesday 5, due to National Holidays. Our office will re-open November 6th, on a regular schedule.

Delvalle & Delvalle

Felicidades Panama, 500 años ! Primera ciudad fundada en el litoral pacifico en america!

Delvalle & Delvalle

El proximo 1ro de julio nuestra oficina permanecera cerrada por motivos feriados en Panama, toma de posesion de presidente electo; Next July 1st, our office will be closed for holiday reasons in Panama, President-elect takes office.

Footer Delvalle & Delvalle logo


Aquilino de la Guardia Ave. &
47 Street, Bella Vista
Ocean Business Plaza Building
(Banesco Tower)
12 Floor, Suite 1203
Panama City, Rep of Panama.